How Long Does it Take to Extend a Lease?
Key Takeaways
- A formal lease extension usually takes 2 to 12 months to complete. Allow a further 3 to 12 months for Land Registry registration (learn more).
- For details on the steps involved, see our guide on the lease extension process.
- Various factors can influence the total time taken (learn more).
The Leasehold and Freehold Reform Act 2024 was passed on the 24th May 2024, but is not yet in effect and the date for this is not yet clear. We will update our content as and when the finalised legislation is published. Read more - Expected changes
How long does a lease extension take?
The formal lease extension process is governed by statutory time frames:
- After the landlord has received the Initial Notice (section 42), they have 21 days to request evidence of the leaseholder's right to a formal lease extension.
- After the landlord has received the Initial Notice (section 42), they have 2 months from the date of the notice to serve their Section 45 - Counter-notice.
- After the landlord has served their Section 45 - Counter-notice, the leaseholder has 6 months to negotiate the premium with the freeholder before they must apply to the Tribunal.
- After the landlord and leaseholder have agreed on a premium, it can take between 1 to 3 months to finalise completion.
- After completion the new lease can take between 3 to 12 months to be registered at the Land Registry.
There are several external factors which can delay the lease extension
- Are you assigning the rights to a buyer?
- Is it a formal or informal lease extension?
- Do you have an absent landlord?
- Does the freeholder dispute your premium?
- Do you dispute the freeholder's legal fees?
These factors mean the process duration can vary significantly, sometimes stretching beyond a year. This is why many leaseholders choose to link the extension to a property sale, assigning their rights to the buyer.
Free Initial Leasehold Advice
Arrange a free consultation with one of our experienced conveyancing executives on:
- Lease extension.
- Purchasing the leasehold, freehold or share of freehold.
- Selling a leasehold property with a short lease.
- Extending the lease at the same time as you sell.
We specialise in lease extensions and have RICS valuers for the premium/negotiation and solicitors for the section 42 notice and formal or informal extension. Request a tailored quote for:
- RICS Lease Extension Valuation or L2 Homebuyers Survey.
- Serving of the section 42 notice or section 13 notice on the freeholder.
- Negotiation with the freeholder (with the support of your RICS valuer).
- Completion of the legal work, including deed of variation.
- Application to Tribunal to determine the premium.
- Vesting order for absent landlords.
How can you speed up the lease extension process?
Several actions can help ensure your lease extension proceeds as smoothly and quickly as possible:
Check that you are eligible to extend
Ensure you meet the eligibility criteria for a formal lease extension early on to avoid delays. You can check if you are eligible here.
Use a specialist RICS lease extension valuer
Incorrect valuations or relying on basic online calculators are common causes of significant delays and disputes.
By offering a well-supported premium figure, you reduce the risk of immediately antagonising the freeholder or facing drawn-out negotiations.
Specialist surveyors and lease extension solicitors work together to ensure your offer is correct and defensible.
Make a reasonable offer
Once you have a professional valuation, make a reasonable initial offer. Starting extremely low can signal a lack of seriousness and prompt the freeholder to disengage or respond with an excessively high figure, leading to prolonged negotiation. Aim for a figure grounded in your valuation to encourage swifter progress.
Check that you have the finances
Ensure you have the funds available to cover the premium and all associated lease extension costs. Delays in securing finances after agreeing terms can hold up completion.
Speak to your freeholder (informal approach)
Before serving the formal Section 42 Notice, having an initial conversation with your freeholder about their willingness to grant an extension and their potential premium expectation can be useful.
While not legally binding, agreeing on a figure in principle informally can sometimes bypass initial valuation disputes and speed up the start of the formal process.
However, be mindful that informal approaches lack the statutory structure and protections of the formal route.
Coordinate with a property sale or remortgage
If you are funding the lease extension through a property sale or remortgage, close coordination between your conveyancer, surveyor, and the buyer/lender is essential to ensure the lease extension completion is timed correctly with the transfer of funds.
How our service helps you extend your lease
To extend your lease efficiently, you'll typically need expert help. Our specialist lease extension solicitors and surveyors provide comprehensive support for the process:
- Securing a professional RICS Lease valuation survey (read more about how the premium is calculated).
- Managing the formal serving of the Section 42 notice on the freeholder.
- Handling negotiations with the freeholder's representatives.
- Completing all necessary lease extension legal work efficiently.
How long does the informal route take?
Unlike the formal route, the informal lease extension process has no prescribed timescales. While this means it can potentially be completed faster in some cases, there's no legal framework to enforce progress.
If you encounter issues with the offer, premium, or contract terms, you lack the statutory rules to compel the freeholder to proceed or negotiate.
Due to this lack of certainty, it's difficult to give a fixed timeline for informal extensions. Delays are common, and if the process slows down, there is often little you can do to speed it up without switching routes.
Consulting with lease extension solicitors can help you understand the potential time risks of the informal route and advise if changing to the formal process for its prescribed timescales and protections becomes necessary.
How do you speed up the informal route?
Similar to the formal route, the leaseholder should ensure they can afford the premium on offer. However, because the process lacks statutory backing, if it slows down, there is little that can be done independently to speed things up.
It is not uncommon for an informal negotiation to be abandoned or changed to a formal lease extension with an amended offer to reflect the 90 years.
This allows the leaseholder to leverage the prescribed time scales and statutory rights for a more favourable lease term and process certainty.
- Fixed Fees.
- Leasehold Specialist Solicitors.
- RICS Surveyor Negotiations.
- Complicated jargon made simple.
- Preparation and serving of Section 42 Notice.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
